Bitcoin's Price Rally Could Be Driven By Multiple Factors In Coming Months: Standard Chartered

Standard Chartered's head of digital assets research sees Bitcoin’s BTC/USD prices possibly experiencing a significant boost in the coming months.

What Happened: The recent rate cut by the U.S. Federal Reserve has led to a situation where long-term borrowing costs for U.S. Treasury notes are relatively higher than short-term borrowing costs.

This is often indicative of future economic growth optimism and sets up a favorable investment environment, including for Bitcoin, according to Geoffrey Kendrick, the global head of digital assets research at Standard Chartered, The Block reported.

The analysts highlight positive signs in the derivatives market, with an uptick in new topside Bitcoin calls added for the Dec. 27 options expiry, primarily around the round strike price figure of $100,000.

This interest has grown at a rate that outpaces the digital asset’s 6% price increase over the past week.

Kendrick points to Vice President Kamala Harris‘ recent remarks in favor of emerging technologies, including digital assets. Her dedication to encouraging innovation while safeguarding consumers and investors suggests a positive future for Bitcoin, irrespective of the outcome on Nov. 5.

Also Read: Long Dormant Bitcoin Whales Are Waking Up: What Is Going On?

Why It Matters: The Federal Reserve’s rate cut, coupled with positive indicators in the derivatives market and supportive comments from Vice President Kamala Harris, are all contributing to a potentially bullish future for Bitcoin.

This comes at a time when digital assets are gaining increased recognition and acceptance globally. The insights provided by Kendrick, a leading expert in the field, offer valuable perspectives for investors and stakeholders in the digital assets market.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

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